BCM Capital Management LLC

ITEM 5 - FEES AND COMPENSATION

BCM’s Management Fee (“Fee”) is based upon investor capital or assets under management
(“AUM”) depending on the terms of the fund or account. Fees generally range up to 95 basis
points, annualized, depending on the structure of the fund or portfolio. In some cases, fees may
fall outside this range based on specific terms or client agreements. Capital or AUM used to
calculate the fee may be measured on a quarterly or monthly basis, depending on the fund or
portfolio structure. Where applicable, the Fee may include a distinct fee on AUM from borrowed
capital when the Fee is based upon investor capital rather than AUM.

The Services associated with the Fee include, but are not necessarily limited to, the following:

   •   Professional investment management, including research and security selection,

   •   Regular comprehensive reporting, and,

   •   Tax reporting and monitoring of capital gains and losses.

The Fee is assessed monthly in arrears for the funds, and quarterly in arrears for separate
accounts and payable at the end of the month for the Services provided. The Fee is calculated
based on the average market value of investor capital during the month.

On occasion, special requirements of the client result in advisory contracts with terms or fee
arrangements differing from those set forth in BCM’s standard fee arrangements. This includes
situations in which the fee may be negotiated.

BCM’s fees are exclusive of transaction fees, and other related costs and expenses which may
be incurred by the client. In addition to BCM’s fees, clients may incur certain charges imposed
by custodians such as wire transfer fees.

A client agreement may be canceled at any time, by either party, for any reason upon written
notice. Upon termination of any account, any prepaid, unearned fees will be promptly refunded
or credited. Also, certain fees may be billed in arrears, e.g., in the event of termination, BCM
will send the client or advisor a pro-rated final bill for services rendered through termination
date.

 BCM may offer SMA clients the opportunity to invest in affiliated funds managed by BCM. In
 such cases, clients may incur fees associated with the SMA and any applicable fees or expenses
 charged by the affiliated fund. This creates a potential conflict of interest, as BCM has an
 incentive to allocate client assets to affiliated products that generate additional compensation.
 BCM seeks to mitigate this conflict through full disclosure and by ensuring that any such
 allocations are made in the best interest of the client and consistent with their investment
 objectives.

ITEM 7 -TYPES OF CLIENTS

 BCM’s clients are individuals, high net worth individuals and certain institutions acting on behalf
 of clients, and pooled investment vehicles (other than investment companies).

BCM establishes accounts with clients both directly and indirectly. The Firm has established
certain initial minimum account requirements, as well as minimum account requirements to
maintain an account, based on the nature of the service(s) being provided. BCM has a typical
minimum dollar value of assets for separate account clients of $2,000,000. The minimum initial
investment for the Funds is $100,000. Certain minimums may be negotiable.